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Exploring Analyst Estimates for Cisco (CSCO) Q3 Earnings, Beyond Revenue and EPS

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The upcoming report from Cisco Systems (CSCO - Free Report) is expected to reveal quarterly earnings of $0.83 per share, indicating a decline of 17% compared to the year-ago period. Analysts forecast revenues of $12.47 billion, representing a decrease of 14.4% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific Cisco metrics that are commonly monitored and projected by Wall Street analysts.

The consensus among analysts is that 'Revenue- Services' will reach $3.52 billion. The estimate indicates a change of +1.3% from the prior-year quarter.

It is projected by analysts that the 'Revenue- Product' will reach $8.86 billion. The estimate points to a change of -20.1% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Product- Collaboration' should arrive at $982.82 million. The estimate indicates a change of -0.2% from the prior-year quarter.

The average prediction of analysts places 'Revenue- Product- Networking' at $6.57 billion. The estimate indicates a change of -13% from the prior-year quarter.

Analysts predict that the 'Revenue- Product- Security' will reach $1.03 billion. The estimate indicates a year-over-year change of +7.8%.

Analysts forecast 'Non-Gaap Gross Margin- Service' to reach $2.41 billion. The estimate is in contrast to the year-ago figure of $2.34 billion.

The consensus estimate for 'Non-Gaap Gross Margin- Product' stands at $5.77 billion. The estimate is in contrast to the year-ago figure of $7.15 billion.

View all Key Company Metrics for Cisco here>>>

Over the past month, shares of Cisco have returned -3.5% versus the Zacks S&P 500 composite's +0.2% change. Currently, CSCO carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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